Katre Kirt, advisor to the Department of Rural Policy and Analysis of the Ministry, explained on Maablog that the value of the production of the agricultural branch of the economy is formed by the determination of prices of agricultural production, livestock production, animal growth, changes in stocks and agricultural services and integral collateral activities.
The costs for food production are substantially divided into three: intermediate consumption, where the costs for animal feed, fertilizers, plant protection products and energy are recorded; depreciation, which indirectly reflects the change in the value of assets; and external factors expressing the cost of labor, interest payments and rent. The performance of the agricultural sector can be measured as the difference between the value of production, to which subsidies are added, and the costs incurred. We prepare a preliminary estimate based on the first three quarters of the current year and historical data.
According to preliminary estimates, the value of agricultural production will decrease by a third
“In 2023. the year was once again unique for agricultural production. The climate inhibited plant growth in spring, which affected both feed production and the starting position of summer crops. Night frosts have damaged the flowers of fruit trees and berry bushes, which is why crops could not be harvested on some plantations,” Kirt said. You noted that the amount of agricultural production depends on both the growing areas and the yield. The total agricultural land in use in Estonia is 985,156 hectares, of which 72% consists of arable land, the rest consists of permanent grassland and permanent crops. 49% of the arable area is cultivated with cereals, 19% with fodder crops, 11% with rapeseed and canola.
“This year, the area cultivated for both cereals and rapeseed and canola has decreased compared to 2022. In 2023, the area used for growing potatoes, vegetables, orchards and berries will be only 8,981 hectares. Yields are also decreased: on average by 13% for cereals, by 22% for rapeseed and rapeseed. For fruits and berries we estimate a decrease in yield by 44%, for vegetables an increase in yield – on average by 3%,” he the consultant explained.
2023-12-06 15:50:59
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